We live an age where everything just seems to move fast and where economies shift from years of massive boom to absolute busts without notice. Economies just aren’t as stable over long periods of time as they used to be. There is always the risk an oil price spike, stock market crash, or some crisis somewhere will cause a wobble in the economy and erode all our savings.
Without sounding all gloomy and doomy, the short advice is you need an investment vehicle that can hold value and is sustainable in the long run. And there is no better way of investing your money than in a rental property. When done right, real estate rarely fails. Here are tips to consider if you are looking to invest a in a rental property in Delahey, Australia.
Any investment is bound to invoke a sense of excitement. But this is one time you should probably taper your excitement, at least until the rental property is in the bag. As anywhere in the world, the real estate market in Australia has many pits that can swallow both you and your investment.
Before making any decision, possibly before you even call your real estate agent Delahey, draw up a realistic budget. You need to know what type of rental property you are going to buy and how much you should raise for it. This will help you draw up a realistic budget.
It is no use drawing up a budget that is too small for the type of property you want to invest in. Be pragmatic about what you can realistically afford and, if possible, engage the services of a capable financial planner. Just as well, you may need extra finance to bridge whatever shortfall you may have.
This one can’t be overemphasized. Location speaks to the very market you are targeting with your rental property. Who is your ideal tenant? Which particular areas have the best returns for that rental property market or show the most potential?
Look for areas with good public transport links, schools, and health facilities. Any potential tenant will have to consider those things when looking for a rental. Even better is to target a specific demographic, like students. Now look for both an area where there is a university or college nearby and a property that will appeal best to students.
Choosing the wrong location for your rental property investment is one of the worst mistakes you can make. You cannot get a proper income from your property if there aren’t enough people interested in renting it. Be where your target market is or, ideally, where a college, major industrial plant, or mine is set to open.
You may be tempted to want to go it alone and shop for the rental property on your own. You probably shouldn’t be doing this. Unless you have worked in real estate before, this is a job you want to live in the hands of an experienced real estate agent Delahey.
There are tricks to the trade and challenges you aren’t familiar with at this point that going it alone may cost you in both time and money spent. The best real estate agents may already have some of the best properties currently listed on their books. Besides, all the processes, inspections, and approvals you will need to get sorted will need an experienced hand to handle without wasting time and effort.
Your chosen real estate agent Delahey will probably advise you accordingly. But it is best to proceed with the investment fully aware of all the costs you will incur in the purchase itself and going forward. There are taxes and fees that will need to be paid. The property itself may require some renovations before you can let it out.
Even after the property has been leased out, there are still running costs to consider. All these will need to be considered before buying your rental property. If anything, this will help you manage your expectations and to set realistic income goals.
For rental properties, it is best to select your property on the basis of livability over luxury. Don’t go out looking for the most luxurious rental properties available. Of course, you will still need the cash to buy them. But, more than that, you will need to be sure you can get people who can afford renting the property.
For example, while they may desire to live in an upmarket condominium, the average student isn’t going to afford it. So if your target market are students, look for a property they can afford to rent. The property you choose to invest in must have the necessary kitchen and bath amenities in a addition to comfortable living areas. This is more important than, say, an outdoor pool on a fancy Victorian style property.
Avoid remorse down the line by getting the property inspected by a trustable professional before you buy it. The goal here is to determine whether the property is structurally sound. There are always going to be flaws that an untrained eye will miss.
Any flaws you pick before you make an offer on the house can be used to negotiate for a lower price. That is if you still decide to go ahead with the purchase. You will likely bear the cost of the repair yourself if you only discover flaws after ownership has already been transferred.
Congratulations, you now have your property in the bag. The first thing you will want to do before you welcome your first tenants is to make sure you have the right insurance for the property. Yes, it is a cost. But it is one you will need to bear as there is always the risk of damage to the property due to fires and other emergencies. Protect your investment by buying the necessary insurance.
Just as well, in the excitement of getting your new tenants be sure to protect yourself by drafting leases that are enforceable under Australian law. Any mistake you make on the lease can make it impossible to litigate if one of your clients fails to meet the terms of the lease.
Some tenants will fail to pay rent while others may damage fittings, furniture, or installations on the property. Get a lawyer to draw up a lease that will protect you as the landlord. There are many good real estate lawyers in Delahey or wherever you may be in Australia.
Are you ready to start looking at rental properties to buy?
Vish Sidhu is a trustable Real Estate Agent Delahey Australia. He is trustable and highly experienced in the local real estate market and will help you get the best property for your money. Give him a call today.